Bridging loan for share purchase and immediate Sale?

Herzlos

So you've got the option to buy £270k worth of shares for £170k? And the broker you have doesn't allow you to either:
1. Buy and immediately sell, no money leaves your account and you're left with the difference in the brokerage account
2. Buy and sell to cover it, no money leaves your account and you'll have £100k worth of shares.


You should have a word with your broker or an independent and see if there's anything to do. I've always done one of the above.





If you can't do either, then the best thing for you to do is buy, say, £1700 worth of shares and sell them for £2700, then buy £2700 worth of shares and sell those for £4050, using that money to buy more.

foxy-stoat

Sounds like some one is trying to scam you....buy them for £170,000 and within a few days they are worth a lot less for some reason or another.

I would agree with the above, buy a few grands worth and sell them for more and repeat the process, that way you are only risking a small amount rather than 6 figures, which you dont have or unlikely get hold of.

ReadingTim

Does the company not offer a cashless exercise facility? I'd be very surprised if they don't. What sort of share scheme is it? (ie SAYE, SIP, LTIP etc?)

lobs123

[FONT=&quot]Hi,[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Thank you all for your advice, really appreciate it.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Firstly - yes the tranche idea is one i had thought of and may go with - my only concern is that I’m guessing the trades will have to be quiet small (as i a: don't have much money to utilise and b: the market might get wise to and not be there for consistent daily large share deals.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]With regard to the scheme it is an EMI.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I don’t know what a cashless exercise facility is (although if it does what it says on the tin i think i may understand [/FONT][FONT=&quot]:D). There is no mention of such a facility in the Scheme rules however. Problem is my track record in asking the group about the option process and receiving honest & correct advice is not great sadly. Perhaps my broker might be able to ascertain?[/FONT]

AnotherJoe

lobs123 wrote: »

[FONT=&quot]Hi,[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Thank you all for your advice, really appreciate it.[/FONT]

[FONT=&quot]Firstly - yes the tranche idea is one i had thought of and may go with - my only concern is that I’m guessing the trades will have to be quiet small (as i a: don't have much money to utilise and b: the market might get wise to and not be there for consistent daily large share deals.[/FONT]

[FONT=&quot]With regard to the scheme it is an EMI.[/FONT]

[FONT=&quot]I don’t know what a cashless exercise facility is (although if it does what it says on the tin i think i may understand [/FONT][FONT=&quot]:D). There is no mention of such a facility in the Scheme rules however. Problem is my track record in asking the group about the option process and receiving honest & correct advice is not great sadly. Perhaps my broker might be able to ascertain?[/FONT]

Is this a tiny company? Because otherwise you are kidding yourself your trades will make a difference. And if its that tiny that £10k or 20K makes a difference, then you cant quietly sell £170k in one go without making waves anyway !


Surely you can easily get hold of £10k to get kicked off? Do you have no emergency funds at all?

foxy-stoat

AnotherJoe wrote: »

Surely you can easily get hold of £10k to get kicked off? Do you have no emergency funds at all?

Hope he would of but he is looking for a way to get a quick £170,000 cash without securing it on property.

Hope you find a way.

somethingcorporate

For a PLC these are likely to be nothing more than noise. If you look at the volumes and values of shares sold in a FTSE100 company there are frequenly £m-£10m trades on a daily basis.


Sounds like the tranche approach is most sensible if you cannot secure the cash in one go. Could you try a personal loan? these can be turned around quite quickly. Early repayment & interest costs are likely to be far outweighed by your overall gain and be far cheaper than bridging finance.

bris

For an employee to give away 270k in shares for 170 has to be a big employee, that employee also needs to be important to them.


Big employees give out incentives without conditions, they want to reward their employees not tease them with conditions they can't meet.


There is more to this, my money is on a grand scale scam. front 170k and say goodbye to it.


No bank is giving you 170k without security as once that 170k is released there is no way they know where it's going.


The 30 days to sell, another red flag. It can be done in a day so why the conditions?

lobs123

[FONT=&quot]No not tiny Company - albeit daily trades rarely exceed 15,000.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I’m afraid to say that all my negative comments come direct from what I’m being told internally to dissuade me from realising my options.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I think the tranche avenue may be my best approach.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Thank you all for your time and advice I greatly appreciate it - i think you have helped me as much as you can.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Thanks again[/FONT]